New Delhi: Liquor prices in Delhi could rise in the coming months as the Delhi government prepares to introduce a new excise policy that may increase excise duty and revise retail margins. The final draft of the policy is reportedly ready and is expected to be notified in October 2026, subject to approval from the Delhi Cabinet and Lieutenant Governor Taranjit Singh Sandhu.
According to a senior Delhi government official quoted by The Indian Express, the draft will be submitted for approval after the appointment of a new Excise Commissioner. Ravi Jha, who was serving as Delhi’s Excise Commissioner, was recently transferred to Arunachal Pradesh. The government is aiming to implement the new policy ahead of the peak festive season.
One of the key proposed changes is an increase in the fixed retail margin for liquor retailers. Private players are not expected to return to Delhi’s liquor retail market, with government corporations likely to continue operating the city’s liquor shops. Officials believe that changes in retail margins could improve the economics of liquor retail outlets and support the expansion of premium liquor stores.
The proposed policy could also address the availability and pricing of premium imported liquor in Delhi. At present, the retail margin is capped at ₹50 per bottle for Indian Made Foreign Liquor (IMFL) and ₹100 per bottle for foreign liquor. Officials say the fixed-margin structure makes it difficult for many outlets to stock premium imported brands priced above ₹1,000, prompting some consumers to travel to neighbouring Gurugram and Faridabad, where pricing structures differ.
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The Delhi government is also considering an increase in excise duty to raise additional revenue. Excise duty is currently linked to different Wholesale Price (WSP) slabs and varies according to liquor category. According to officials, the duty on Indian spirits currently ranges from 30% to 300%. Any increase in these duty slabs would add to the tax component of liquor prices and could make alcoholic beverages more expensive for consumers.
Industry representatives have also pointed out that changes in both excise duty and retail margins could have a compounding effect on final retail prices. Brewers Association of India Director General Vinod Giri said that while there could be room for an increase in excise duty, the level of any revised retail margin would be important for the industry and consumers.
The new policy may also bring changes to liquor retail infrastructure and the availability of premium products. Officials have indicated that the government is looking at increasing the number of premium liquor stores, while private retail participation is unlikely under the proposed framework.
The move comes as Delhi prepares for the upcoming festive season. The government has already stepped up enforcement against illegal liquor, with 725 FIRs registered and 730 people arrested between April and August 2026, according to government data. The Excise Department has also recovered around 2.2 lakh bottles of illegal liquor during the period.
If approved, the new Delhi excise policy could therefore bring significant changes to liquor pricing, retail margins, premium-product availability and the functioning of liquor outlets in the national capital. However, the exact duty rates, retail margins and other provisions will become clear only after the policy receives final approval and is officially notified.
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